Guangzhou: Guangdong Zhenrong Energy is seeking funds from the private lending market to help revive Titan Petrochemicals, which is on the verge of liquidation, local financial media China Business Journal has reported.
Zhenrong has commissioned agencies to look for funds from private lending firms in cities including Guangzhou and Shenzhen and is willing to accept an interest as high as 22-28%. The company will pledge its 160m shares in Hong Kong-listed Sheng Yuan Holdings as collateral.
A private lending agency in Guangzhou confirmed that it has received an inquiry from Zhenrong to borrow RMB60m ($9.6m), and the purpose of the lending is to solve the stock trading resumption of TitanPetrochemicals. However, the lending agency didn’t approve the loan as it reckons the deal to be highly risky.
Zhenrong became the controlling shareholder of Titan Petrochemicals in August 2012, acquiring 45.57% equity shares in the company.